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3 Mar 2015
Sterling rally taking a breather – KBC
FXStreet (Barcelona) - According to KBC Bank, the GBP rally is taking a breather in the short-term, while longer-term EUR/GBP still remains a sell-on upticks.
Key Quotes
“Sterling had a strong run against the euro recently and even set a new multi-year high versus the euro early in Asia yesterday. The UK manufacturing PMI, an important piece of economic data, was very strong again. However, this time, sterling failed to profit.”
“EUR/GBP even rebounded to the 0.7300 area. Cable was under pressure, too. The pair dropped to the mid 1.53 area.”
“Today, UK construction PMI will be published. It is the least important of the three PMI’s which are published at the start of the month. A stabilisation at a higher level (59.0 from 59.1) is expected. The market reaction to the report, if any, should be only of intraday significance, at best.”
“A disappointing release might be used as an excuse for some further short-term profit taking on sterling longs.”
“Longer term we maintain a sell-on-upticks approach for EUR/GBP, especially as we expect the euro to stay under moderate pressure as QE is implemented.”
“Short-term, sterling apparently needs a breather after the recent rebound, both against the euro and the dollar.”
Key Quotes
“Sterling had a strong run against the euro recently and even set a new multi-year high versus the euro early in Asia yesterday. The UK manufacturing PMI, an important piece of economic data, was very strong again. However, this time, sterling failed to profit.”
“EUR/GBP even rebounded to the 0.7300 area. Cable was under pressure, too. The pair dropped to the mid 1.53 area.”
“Today, UK construction PMI will be published. It is the least important of the three PMI’s which are published at the start of the month. A stabilisation at a higher level (59.0 from 59.1) is expected. The market reaction to the report, if any, should be only of intraday significance, at best.”
“A disappointing release might be used as an excuse for some further short-term profit taking on sterling longs.”
“Longer term we maintain a sell-on-upticks approach for EUR/GBP, especially as we expect the euro to stay under moderate pressure as QE is implemented.”
“Short-term, sterling apparently needs a breather after the recent rebound, both against the euro and the dollar.”